How I Learned to Stop Micromanaging

By Michael Zwick, President, Assets International, Southfield, Mich.
Faced with stagnant profits a few years ago, I decided that raising our name recognition would be critical to growth. To do it, I needed to hire a new employee to maintain and expand our relationships with our clients, who are attorneys, paralegals and bank officials.

I had hired plenty of new employees in the past, and I was able to keep tabs on what they were doing because they had roles I had previously filled. But this time it was different: This new hire had skills that were completely foreign to me. That was partly why I needed her, but it also meant I had to fight the urge to second-guess what she was doing and let her do her job. With the right mindset and a few key strategies, I did -- and our revenue has soared.

Realizing the need for new expertise
My business has a very specific niche: My staff of 20 locates missing heirs. When we find probate proceedings in which there is money for a missing heir, we approach the lawyer in the case -- who has a legal responsibility to find the missing heir -- and offer to locate the heir in exchange for a percentage of the heir's inheritance.

We had experienced moderate growth since 2001, but a few years ago I noticed we were wasting a lot of time on unsuccessful business leads. We spent months locating these missing heirs, only to discover they often already knew about the money. If we had relationships with banks and estate lawyers, then we would get good leads that actually led to real work, and we wouldn't waste time on dead ends. Lawyers may have a missing heir case every six months or so, and I realized I needed to hire someone to do outreach full time.

How to hire for an unfamiliar skill set
It was a little scary that this new person would need expertise -- namely advertising and marketing -- that I didn't have already. I recruited widely, looking for someone who had experience in developing relationships in the professional world. I narrowed down the selection to two candidates who both had strong marketing experience and great references.

When I invited each for a second interview, I decided to surprise them with some role-playing, which can really show a person's true capacity. I played an attorney who was a prospective client, and I told each candidate, "We've just met in an elevator. Tell me what you do." Pam, the person we hired, nailed it.

Trusting the new hire's expertise
Pam was a great fit for the position, but I was still concerned about giving her responsibility. I'm no expert, but I have my own ideas on how to do outreach. I wanted her to do some mailing blasts using a list of thousands of professionals that I'd compiled. But Pam wanted to take a more old-fashioned approach: She wanted to go door-to-door, introducing herself and explaining what she does and what our company does.

I was very skeptical about this approach. I put myself in the shoes of our potential clients and thought, "I wouldn't make time for someone who shows up to my door." I thought it was an archaic way to sell something, and I didn't think it would succeed.

But I am a big believer in trying different things: Some will succeed and some will fail, but it's better to at least try. I consciously reminded myself that she knows business development and client relations better than I did, and decided to trust her.

Reaping the rewards
Through Pam's legwork, she developed relationships with one of the largest banks here in Michigan. Now, whenever one of the bank's 20 trust administers gets a missing heir case, they call us. In the last year, we received half a dozen referrals from them. Our revenue in 2009 was $1.5 million; this year, we are on track to bring in $2 million.

I didn't give Pam complete free rein, of course. At first, we had weekly meetings to touch base. Those meetings allowed me to get a sense of what was going on, and to give my input where appropriate. When I thought she was taking the face-to-face approach too far, I reminded her not to forget our more traditional outreach efforts for clients across the country.

When I look at great companies over time, I find the ones that do best incorporate their employees' input. Employees are your most valuable business assets. Whatever you give to them in terms of respect and freedom, you will reap that back many times over.

Michael Zwick went from an attorney to a private investigator, but he swears he doesn't drive a fancy sports car or wear Hawaiian shorts. The Edward Lowe Foundation presented Assets International with the 'Company to Watch' distinction last April.
-- As told to Caitlin Elsaesser

Resources:

• Read more about the drawbacks of micromanaging.
• Learn about 10 things you should never micromanage.
• Follow an expert's advice on how to hire a marketing director.